09-02 - 01-06 - Financing 2010 PMP bonds
Resolution 09-2
January 6, 2009
Member Shaffer introduced the following resolution and moved its adoption:
RESOLUTION RELATING TO THE FINANCING OF THE CITY'S 2010
PAVEMENT MANAGEMENT PROGRAM; ESTABLISHING COMPLIANCE WITH
REIMBURSEMENT BOND REGULATIONS UNDER THE INTERNAL REVENUE CODE
BE IT RESOLVED by the City Council of the City of Golden Valley, Minnesota (the
"City"), as follows:
1. Recitals.
(a) The Internal Revenue Service has issued Section 1.150-2 of the
Income Tax Regulations (the "Regulations") dealing with the issuance of bonds all or
a portion of the proceeds of which are to be used to reimburse the City for project
expenditures made by the City prior to the date of issuance.
(b) The Regulations generally require that the City make a declaration of
its official intent to reimburse itself for such prior expenditures out of the proceeds of
a subsequently issued series of bonds within 60 days after payment of the
expenditures, that the bonds be issued and the reimbursement allocation be made
from the proceeds of such bonds within the reimbursement period (as defined in the
Regulations), and that the expenditures reimbursed be capital expenditures or costs
of issuance of the bonds.
(c) The City desires to comply with requirements of the Regulations with
respect to the projects hereinafter identified.
2. Official Intent Declaration.
(a) The City proposes to undertake a pavement management program in
2010, consisting of the improvement of the City streets identified on Exhibit A hereto
(collectively, the "Project"), and to make original expenditures with respect thereto
prior to the issuance of reimbursement bonds, and reasonably expects to issue
reimbursement bonds for the Project, in one or more series, in an amount not to
exceed $5,600,000.
(b) Other than (i) de minimis amounts permitted to be reimbursed pursuant to
Section 1.150-2(f)(1) of the Regulations or (ii) expenditures constituting preliminary
expenditures as defined in Section 1.150-2(f)(2) of the Regulations, the City will not
seek reimbursement for any original expenditures with respect to the foregoing
Project paid more than 60 days prior to the date of adoption of this resolution. All
original expenditures for which reimbursement is sought will be capital expenditures
or costs of issuance of the reimbursement bonds.
Resolution 09-2 - Continued
January 6, 2009
3. Budgetary Matters. As of the date hereof, there are no City funds
reserved, pledged, allocated on a long term basis or otherwise set aside (or
reasonably expected to be reserved, pledged, allocated on a long term basis or
otherwise set aside) to provide permanent financing for the original expenditures
related to the Project, other than pursuant to the issuance of the reimbursement
bonds. Consequently, it is not expected that the issuance of the reimbursement
bonds will result in the creation of any replacement proceeds.
4. Reimbursement Allocations. The City's Finance Director shall be
responsible for making the "reimbursement allocations" described in the
Regulations, being generally the transfer of the appropriate amount of proceeds of
the reimbursement bonds to reimburse the source of temporary financing used by
the City to make payment of the original expenditures relating to the Project. Each
reimbursement allocation shall be made within 30 days of the date of issuance of the
reimbursement bonds, shall be evidenced by an entry on the official books and
records of the City maintained for the reimbursement bonds and shall specifically
identify the original expenditures being reimbursed.
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Linda R. Loomis, Mayor
ATTEST:
~~n~~~~
The motion for the adoption of the foregoing resolution was seconded by Member Freiberg
and upon a vote being taken thereon, the following voted in favor thereof: Freiberg, Loomis,
Pentel and Shaffer; and the following was absent: Scanlon, and the following voted against
the same: none, whereupon said resolution was declared duly passed and adopted, signed
by the Mayor and her signature attested by the City Clerk.
Resolution 09-2 - Continued
January 6, 2009
EXHIBIT A
2010 PAVEMENT MANAGEMENT STREET LIST:
. Cutacross Road: Meander Road to Ski Hill Road
. Edgewood Avenue North: Glenwood Avenue to Westchester Circle
. Georgia Avenue North: Glenwood Avenue to Westchester Circle
. Harold Avenue: Idaho Avenue North to cul-de-sac
. Idaho Avenue North: cul-de-sac to Olson Memorial Frontage Road (south)
. Kingston Circle: Idaho Avenue North to cul-de-sac
. Meander Road: Glenwood Avenue to Cutacross Road (west)
. Olson Memorial Frontage Road (south): Douglas Drive to Glenwood Avenue
. Olson Memorial Frontage Road (south): cul-de-sac to 375 feet East of Schaper Drive
. Paisley Lane: Glenwood Avenue to Cutacross Road
. Pomander Walk: Paisley Lane to cul-de-sac
. Rhode Island Avenue North: Harold Avenue to cul-de-sac
. Ski Hill Road: Paisley Lane to cul-de-sac
. Westchester Circle: Olson Memorial Frontage Road (east) to Olson Memorial Frontage
Road (west)
. Windy Draw: Ski Hill Road to cul-de-sac